Guide to overpaying your mortgage

How to make additional payments and take years off your mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

How do mortgage overpayments work?
Ways to make overpayments

Why make overpayments?

Making overpayments on your mortgage can make a big difference to the amount of interest you pay and potentially knock years off the length of time you will being paying your mortgage.

Another advantage of making overpayments on your mortgage is the chance to take a payment holiday sometime in the future. If you want to take a payment holiday, you must arrange it with us first.

How does it work?

It’s easy to do and just means paying a bit extra with your usual monthly payment, or making occasional lump sum payments on top of your monthly payment. See how to make overpayments

Any overpayments you make will be credited to your mortgage account the same day, which will reduce the amount you owe straight away. And because interest on your mortgage is charged daily, your overpayment will reduce the amount of interest charged, straight away.

Try our overpayment calculator and see how much you could save.

Overpayment calculator

How it could work for you

You can start to reduce your mortgage balance, meaning you could potentially pay off your mortgage sooner.

Overpaying your mortgage enough to cover one or more extra regular month’s payments, could mean you can take a payment holiday in the future. If you want to take a payment holiday, you must arrange it with us first.

As savings rates are currently low, the amount you would save on your mortgage interest could be more than you would otherwise earn in savings interest.

Overpayment options

When you decide to make a mortgage overpayment it’s worth looking at which option suits your circumstances best. For example:

If you get a regular bonus or inherit some money – make a lump-sum payment whenever it suits you.
If you are planning on starting a family and would like to reduce or stop paying your mortgage while on maternity or paternity leave – make enough overpayments to cover the months you want to change your payment for. You can only stop or reduce your standard monthly mortgage payment by arrangement with us first.
You like the idea of being mortgage free earlier – making regular overpayments will reduce the interest you pay, enabling to reduce the length of your mortgage term.

However you choose to overpay, you can change or stop at any time.

Try our overpayment calculator and see how much you could save

Overpayment calculator

The payment details you'll need

Sort code: 60 92 04
Account number: the first eight digits of your mortgage account number
Reference or roll number: all 10 digits of your mortgage account number
Payee: the name your mortgage account is under.

You can overpay:

Online from your bank or building society account.

In branch by cash or cheque
Over the phone by debit card

Types of overpayment

Adhoc and lump sum payments

The most flexible way to make an overpayment is to set up a payment from your current account.

Some months you might want to pay more and other months. Some months you might not want to make an overpayment.
You can overpay however much you would like, as often as you like, subject to your terms & conditions.

From your bank or building society account.

Other ways to make an adhoc payment:

In branch by cash or cheque
Over the phone by debit card

Increasing your regular monthly payment

If you'd like to make a regular additional payment, and your standard mortgage payment is collected by Direct Debit, you will need to call our Customer Contact Centre to authorise the collection of an amount on top of the standard monthly payment.

Direct debit

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8.00am - 8.00pm Mon-Fri 9.00am - 1.00pm Sat

This overpayment will continue every month until you tell us to stop or change it.

Overpayments to mortgages with more than one part

Where a regular additional payment is registered, it is possible to make the overpayment to a particular part of your loan by giving us specific instructions to do this when setting up the arrangement with us.

Mortgage overpayment questions asked by you

Will my overpayments affect the length of time I have left to pay the mortgage?

Making an overpayment won’t automatically cut down your mortgage term.

Overpayments will cut down your mortgage balance, which means we’ll charge you less interest. This means, at your annual mortgage review, we will lower the amount you have to pay per month in the coming years.

If you'd like to reduce your mortgage term length instead, get in touch:

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My mortgage has more than one part. Which part will be paid off first?

When you make an overpayment on your mortgage, by default all parts are paid proportionally. So the same percentage of each part will be paid, whatever the size.

If you make your overpayment by direct debit (as an additional part of your regular monthly payment,) you can tell us if you’d like to pay different amounts to different parts of your mortgage.

Things to be aware of

The amount you can overpay each year without receiving Early Repayment Charge, depends on the mortgage deal you have.
All of our mortgage deals allow you to overpay up to 10% of your mortgage balance each year. Some products allow more.
Once you have made an overpayment, you can’t take that money back from your mortgage like you could a savings account. Though it may be possible to take a payment holiday.

Please check your product factsheet and mortgage offer for full details of overpayment restrictions and Early Repayment Charges.

Visit us

You can visit us in branch to speak to a mortgage adviser.

Request an appointment

Call us

Speak to one of our friendly mortgage advisers about your options

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9am - 5pm Mon-Fri 9am - 1pm Sat